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Why does LeBron James make so much more than the ball boy and concession stand workers and ushers? A CEO that delivers alpha deserves a big cut of that. The bo

Why does LeBron James make so much more than the ball boy and concession stand workers and ushers? A CEO that delivers alpha deserves a big cut of that. The board exists to hire leaders that can deliver alpha. A good deal fail to. But the ones that do are more than worth their compensation. And btw you have 0 chance of attracting the kind of CEO that can deliver alpha by offering peanuts. It doesn’t always work out and there’s plenty of snake oil CEOs, but the good and great ones are worth every cent to stock holders.

ken47 3y ago
My understanding is that the CEO's in question are not even remotely comparable to Lebron James's stature in basketball.
- nemo44x 3y ago
  Then your understanding is misinformed I’m sorry to report. CEOs are generally top level business people and most business people can’t play at their level. There are exceptions but the system cycles poor performers out much like the NBA does to high draft picks that have lower than replacement value. Businesses compete against each other and the CEO orchestrates the strategy and is accountable for the the execution across a broad spectrum of functions. There is a power law distribution where the very best CEOs are vastly superior to the good who are to the replacement level ones. So like in the NBA you may overpay for a guy in the hopes they are great or you pay handsomely for a good player that is above replacement level or you pay the highest for the best to run your company. Sometimes it pays off and sometimes not. But the value that great CEOs produce is astronomical. Well more than a basketball player could ever hope to produce.
  - ken47 3y ago
    The problem is that so many people are "CEO" nowadays. Anyone can become a CEO tomorrow by registering a corporation for a few thousand dollars or less. The businesses that produce great value, and may reflect well on their CEO's abilities, are in the minority.

ken47 3y ago

My understanding is that the CEO's in question are not even remotely comparable to Lebron James's stature in basketball.

nemo44x 3y ago
Then your understanding is misinformed I’m sorry to report. CEOs are generally top level business people and most business people can’t play at their level. There are exceptions but the system cycles poor performers out much like the NBA does to high draft picks that have lower than replacement value. Businesses compete against each other and the CEO orchestrates the strategy and is accountable for the the execution across a broad spectrum of functions. There is a power law distribution where the very best CEOs are vastly superior to the good who are to the replacement level ones. So like in the NBA you may overpay for a guy in the hopes they are great or you pay handsomely for a good player that is above replacement level or you pay the highest for the best to run your company. Sometimes it pays off and sometimes not. But the value that great CEOs produce is astronomical. Well more than a basketball player could ever hope to produce.
- ken47 3y ago
  The problem is that so many people are "CEO" nowadays. Anyone can become a CEO tomorrow by registering a corporation for a few thousand dollars or less. The businesses that produce great value, and may reflect well on their CEO's abilities, are in the minority.